Here is your ETF Outlook for the Week of November 11, 2013
SPDR Dow Jones Industrial Average ETF (NYSE:
The basket of 30 large-cap stocks hit a new all-time closing
high on Friday as the S&P 500 and NASDAQ have yet to break
thought their 2013 highs.
The rally in the Dow was led by tech names Microsoft (NASDAQ:
) and Cisco (NASDAQ:
), both gaining over 4 percent last week. Year-to-date the ETF is
up 20.6 percent and is lagging the SPDR S&P 500 ETF (NYSE:
) and is still an inferior investment choice to the SPY over the
long-term. But it is always bullish to have such a widely
followed index breakout to an all-time high before a weekend.
iShares MSCI Emerging Markets ETF (NYSE:
One of the biggest laggards this past week was the emerging
market stocks. The major player in the world of emerging market
ETFS, EEM, lost 3 percent in the last week and is trading at the
lowest level in a month.
This is happening as the Dow hit a new all-time high. The last
time interest rates increased in the U.S. it hit the emerging
market and the increase the last two weeks has had the same
affect on EEM. The level to watch this week on EEM is $40.10,
which is important support. The ETF traded as low as $40.75 on
Friday before closing at $41.16.
iShares Dow Jones U.S. Regional Banks ETF (NYSE:
The jobs number on Friday sent the yield on the 10-year
Treasury to 2.74 percent, an increase of 5.1 percent from
Thursday. This is leading to the creation of a steeper yield
curve, which will be good for the banks as they will be more
inclined to lend money.
IAT is a basket of regional banks that rely on lending to
consumers and small businesses and a pickup in that portion of
their business would be a boost to the bottom line. The ETF
closed up 3.0 percent on Friday to the best level in five years.
Keep an eye on the regionals as they will likely outperform the
larger SPDR Financial ETF (NYSE:
iShares MSCI New Zealand Investable Market ETF (NYSE:
The top performing ETF last week with a gain of 2.1 percent,
it hit a new high on Wednesday before pulling back with the world
markets on Thursday.
The New Zealand benchmark NZX 50 hit a new all-time high last
week as it was lead by Xero, a cloud based software company that
is now the second largest company in the index. New Zealand is a
country that is often overshadowed by Australia, but this year it
has been a much better performer by outpacing its neighboring
country by 10 percent.
United States Gasoline ETF (NYSE:
The ETF that tracks the futures price of gasoline has fallen
to a level it has hit four times in the last year. UGA hit a low
of $53.56 this week before rallying on Friday with the energy
The chart below shows the multiple times UGA has hit the
$53.50 area before rallying. There are two ways to approach this
chart. First would be to buy near the support line with a
stop-loss at $52.50. The second would be to short the ETF if it
breaks below support and confirms a breakdown. This week should
give insight into which strategy is the best option.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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